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CMA Intermediate · Corporate Accounting and Auditing · Audit Sampling, Audit Techniques and Analytical Procedure

As per SA 530, while selecting items for an audit sample, the auditor shall ensure that:

SA 530 requires the auditor to select sample items in such a way that every sampling unit in the population has a chance of selection. Restricting selection by management's wishes, by time period or by client approval would exclude some units and defeat this requirement.

  1. Aeach sampling unit in the population has a chance of selectionCorrect
  2. Bonly items above a value set by management are eligible for selection
  3. Citems are selected only from the first half of the financial year
  4. Ditems are selected only after the client approves the list

Explanation

Under SA 530 the auditor shall select items for the sample so that each sampling unit in the population has a chance of selection. Limiting selection to management-chosen, period-restricted or client-approved items would deny some units any chance of selection.

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